FTX Creditors Face Steep Losses Amid Crypto Rally

[etfs]

Creditors of the defunct FTX exchange may recover only a fraction of their original losses due to soaring cryptocurrency prices.

FTX creditor advocate Suni Kavuri estimates payouts could range between 9% and 46% of the value users initially held in digital assets. With Bitcoin trading above $110,000 — up from $16,871 at the time of FTX’s collapse — dollar-denominated repayments now cover only a small portion of the equivalent crypto holdings.

[Nahid10]

Imagine watching BTC pump while your claim gets locked at the bottom.

[EmTeam]

FTX creditors are the ultimate lesson in custodial risk.